What is Kylin Network?
Kylin Network provides any application, blockchain or parachain access to external data. It allows dApp builders to find data such as pricing feeds for Bitcoin or USD, stock markets, or weather predictions. Essentially, the platform enables smart contracts to query an API to find data that does not live natively on chain. This is an integral part of the growing DeFi economy, as the yield farming projects needs reliable and valid data sources to operate. However, as oracles are third party services they can also become the single point of failure for a supposedly decentralized application. Furthermore, builders are often put off by the high cost of using a decentralized oracle service. While the statement that your application uses a decentralized data source for pricing feeds sounds great. In reality, the high cost of its usage may vastly outweigh any benefit by being unsustainable.
Kylin Network aims to solve the “Oracle Problem” by leveraging the power of Polkadot to build a data economy.
Kylin Network Data Economy
It may be easier to think of Kylin Network as a data provider such as Ocean Protocol or SingularityNET, and not just an oracle solution such as Dia or Tellor. There are four major components which form the platform’s data economy.
- Analytics: these tools aim to automatically present data in a way that can improve an application’s efficiency. A query engine for the public and API access for developers, designed for data warehouses.
- Data Oracle: the must have for any web 3.0 data economy, a decentralized data feeding protocol powered by Polkadot. Using a network of data providers, oracle nodes, and arbitration nodes, it ensures data sourcing remains decentralized. The end result is access to multiple real-time data sources in a practical and cost effective manner.
- Marketplace: an open platform for pricing and trading data, ensuring that Dapps will have access to a full range of off-chain and on-chain data at competitive prices.
- Kylin Token: the on-chain governance KYL token ensures the platform will remain decentralized as it develops. KYL token is also a requirement (through staking) for operating an Oracle Node or for opening a dispute. Additionally, KYL will be used for payment to access private data APIs.
To summarize, Kylin Network aims to build a data infrastructure that fits the growing demands from DeFi and Web 3.0 products.
Furthermore, the platform is leveraging Polkadot’s native cross chain interoperability and scalability to support multiple networks at low cost. For example, Kylin Oracle will face no issues supporting use cases such as a decentralized insurance platform, DeFi lending platforms, cross-chain DEX, stablecoins, and blockchain games.
According to their roadmap, the Mainnet Test Version will release during 2021 Q1 – that will be a major milestone to watch!